Wine companies in the United States are increasingly closing wineries as alcohol consumption declines across the country.
Jackson Family Wines halted wine production at its Carneros Hills facility in Sonoma Carneros and laid off more than 12 employees, according to an employment adjustment and retraining notice filed with California authorities on Dec. 12, the New York Post reported Sunday.
"We consolidated operations due to underutilization of wine production facilities," Jackson Family Wines said. The company ranks as the sixth-largest wine producer in the US and owns approximately 25 wineries in California, which accounts for about 80% of American wine production.
Last week, Gallo, the world's largest wine company, announced plans to close its Ranch Winery in St. Helena and cut approximately 100 jobs. Gallo is also reducing staff at Louis M. Martini Winery and Orin Swift Tasting Room in St. Helena, as well as J Vineyards and Fry Ranch Winery in Healdsburg.
"We are adjusting some operations to align with our long-term business strategy," Gallo said. "This process required difficult decisions to scale back certain winery operations, reflecting market conditions, shifts in consumer demand, and available production capacity across our wineries."
Earlier this month, Foley Family Wines & Spirits closed Chalone winery on the Central Coast. Last month, Constellation Brands notified approximately 200 employees at Mission Bell Winery in Madera of layoffs.
The wave of winery closures and workforce reductions largely stems from plummeting alcohol consumption. A Gallup poll conducted in August showed that only 54% of American adults drink alcohol, the lowest level in 30 years, as awareness spreads that even moderate drinking poses health risks.